Sybase, Inc. (NYSE: SY), an industry leader in enterprise and mobile software, today reported financial results for the second quarter ended June 30, 2010.
- Historical second quarter records achieved in total revenue, operating income, operating margin, net income, and EPS
- Total revenue up 9% year over year
- Mobile software license revenue increased 12%
- Messaging revenue increased 24%
- GAAP operating income up 17% to $74.3 million, representing operating margin of 25%
- Non-GAAP operating income up 17% to $91.2 million, representing operating margin of 30%
- GAAP EPS up 19% to US$0.51; non-GAAP EPS up 18% to US$0.66
2010 Second Quarter Results
Total revenue for the second quarter of 2010 grew 9% to US$302.0 million, compared to US$278.0 million in the second quarter of 2009. License revenue grew 6% to US$100.1 million, compared to US$94.1 million in the second quarter of 2009. Services revenue grew 5% to US$147.2 million, and messaging revenue grew 24% to US$54.8 million in the second quarter of 2010.
Operating income calculated in accordance with generally accepted accounting principles (GAAP) for the second quarter increased 17% year over year to US$74.3 million, representing an operating margin of 25%.
For the quarter, GAAP net income grew 20% year over year to US$45.3 million. GAAP earnings per diluted share (EPS) grew 19% year over year to US$0.51.
Non-GAAP operating income for the second quarter of 2010 increased 17% year over year to US$91.2 million, representing a 30% operating margin.
Non-GAAP net income for the second quarter grew 20% year over year to US$59.1 million. Non-GAAP EPS grew 18% year over year to US$0.66.
Non-GAAP amounts exclude the amortization of certain purchased intangibles, stock-based compensation, restructuring costs, charges related to the impairment of auction rate securities, imputed interest related to our convertible debt, gains or losses on assets held for employees in a deferred compensation plan, transaction costs relating to the pending tender offer from a subsidiary of SAP America, Inc. to purchase all of our outstanding stock, and the tax effect of these and related items.
Accompanying this release is a reconciliation from GAAP to non-GAAP amounts for the second quarter of 2010 and the comparable prior-year period.
"We are very pleased to deliver another record quarter, including historical second-quarter highs in revenue, operating margins, and earnings,' stated Chairman, CEO and President of Sybase John Chen.
'Our consistently strong financial performance demonstrates Sybase's market leadership, validates our Unwired Enterprise vision, and reflects the compelling market opportunities that exist in enterprise mobility and analytics.'
'Our success would not have been possible without the hard work from Sybase employees, the trusted relationships with customers and partners, and the support of the financial community. We are proud of the ongoing product innovation delivered to customers and the long-term value delivered to our shareholders. We thank all of our stakeholders for their dedication and commitment to Sybase,' concluded Mr. Chen.
Pending Tender Offer
In light of the pending tender offer from Sheffield Acquisition Corp., a wholly owned subsidiary of SAP America, Inc., to purchase all of Sybase's common stock for US$65 per share, the company will not hold a conference call to discuss the second quarter results.